Central Kentucky Regional Policy Group

Juva Barber

Executive Director

What is KBT?

Kentuckians for Better Transportation educates and advocates for all modes of transportation to promote a safe, sustainable transportation network that brings economic growth and improved quality of life to all Kentucky communities.

Information Courtesy Kentucky Transportation Cabinet 2014

Local Roads, Highways & Bridges

Funding FY 2015w/ HB’s 299 & 510

FY 2016 W/HB 299

Revenues

Motor Fuels Tax $851 $737.7

Motor Vehicle Usage $425.5 $445.5

Motor Vehicle License $101.9 $103.1

Weight Distance $79.9 $81.4

Other $36.4 $36.7

Motor Vehicle Operators

$16.7 $17.5

Investment $3.1 $3.7

Total Road Fund $1,514.5 $1,425.5

Federal Funds $726.8 $729.1

Local Roads, Highways & BridgesCalculating the tax rate:

9% *AWP + 5 ¢ + 1.4 ¢ = tax rate

9% *$2.177 + 5 ¢ + 1.4 ¢ = 26¢ per gallon

• Effective April 1, 2015 – until July 1, 2016• After July 1, 2016 can increase or decrease no

more than 10% per year• $2.177 is also the new statutory floor

Motor Fuels Revenues

FY 2015 FY 2016

CFG HB 299 1 CFG HB 299 2

Program Official Est Revenue Impact Official Est Revenue Impact

County Road Aid 149,967,100 144,074,500 (5,892,600) 147,643,000 123,322,300 (24,320,700)

Municipal Road Aid 63,100,900 60,621,500 (2,479,400) 62,123,000 51,889,700 (10,233,300)

Rural Secondary 181,927,400 174,779,000 (7,148,400) 179,108,000 149,604,200 (29,503,800)

State Construction 488,204,600 471,525,000 (16,679,600) 481,626,000 412,783,800 (68,842,200)

TOTAL Road Funds 883,200,000 851,000,000 (32,200,000) 870,500,000 737,600,000 (132,900,000)

Program HB 510 3

CRA - General Fund Offset 5,490,000

MRA - General Fund Offset 2,310,000

TOTAL General Funds 7,800,000

Federal IssuesThe Highway account is the primary source of revenues for Federal-aid funding returned to the States for carrying out various highway programs.

• Motor Fuels tax (18.4 cents per gallon) = $34 billion per year

• Has not been raised since 1993

• Has required transfers from the General Fund to the FHTF in a total amount of $65 billion

• The Congressional Budget Office estimates that if spending continues at its current rate, HTF revenues will fall short of projected spending by $157 billion cumulatively over the next 10 years.

• Need a long term authorization bill with adequate funding source– CR expires on May 31, 2015– Enough funding to operate through July

Transit

Additional Federal Issue related to FHTF– Transit funding tied to the federal gas tax –

roughly 20% of revenues coming into the Highway Trust Fund are dedicated to Mass Transit Account

– Estimated $25 million per year comes to Kentucky from Mass Transit Account

– Used to build and upgrade rail mass transit systems and purchase and upgrade buses and facilities of local transit agencies

Aviation

Federal Aviation Administration Authorization

– Expires September, 2015– Encourage Congress to develop a long term

authorization – not a continuing resolution– Encourage a well funded AIP program for GA

airports– Encourage adequate funding options for all

commercial airports

Rail

Short Line Railroad Rehabilitation and Investment Act of 2015

• The Short Line Tax Credit leverages private sector investment in rail infrastructure by providing a tax credit of 50 cents for every dollar spent on track improvements (45G)

• The credit is capped based on a mileage based formula

• Expired December 2014

• H.R. 721 and S. 637 contains language authorizing the tax credit for 2015 and 2016 tax years

ALTERNATIVE FUNDING

• Public Private Partnerships

• LIFT – Local Investments for Transformation

Transportation Makes It Happen

THANK YOU!